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Media Hardware

HD DVD Player Sales Grind To a Halt 507

Lucas123 writes "While the news may fall under the 'Duh' category, it's still relatively shocking how quickly the death knell for HD DVD player sales came on after Warner Bros. announced they were dropping dual hi-def DVD format support in order to back only Blu-ray. According to a Computerworld story, the week after Warner's announcement, sales of HD DVD players dropped to 1,758, down from 14,558 players the week before. In contrast, consumers bought 21,770 Blu-ray Disc players, up from 15,257 the previous week."
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HD DVD Player Sales Grind To a Halt

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  • by damn_registrars ( 1103043 ) <damn.registrars@gmail.com> on Friday January 25, 2008 @01:15PM (#22183270) Homepage Journal
    Previously, I had heard that the total sales for blue ray players included sales of PS3 consoles. Are they included in these numbers as well? I know that there are certainly people out there who bought PS3's with the intention of playing PS3 games, and didn't really care that they could play blue ray movies as well.

    That said, of course the loss of another studio from HD DVD to Blue Ray likely didn't hurt sales of stand-alone blue ray players, either.
  • one week (Score:4, Interesting)

    by Anonymous Coward on Friday January 25, 2008 @01:17PM (#22183286)
    And as the article points out, the information from that week is useful to gauge sales for that one week only. Since Toshiba responded the following week with massive price cuts, the sales figures will be drastically different for the following weeks. Basically, these numbers will be all over the map for a while, and won't be useful for generating any sort of trend. That said, it is clear that HD DVD will be going away soon.
  • by AdamTrace ( 255409 ) on Friday January 25, 2008 @01:21PM (#22183334)
    I, like I'm sure many other average-joe consumers, have been just WAITING for the decision to be made before going out and spending hard earned cash on a high-def player.

    Warner Brothers moving to BluRay, along with rumors of Universal and Paramount possibly following suit, have really been a good sign.

    I bought PS3 (and Rock Band!) pretty quickly after the news came out.
  • by ergo98 ( 9391 ) on Friday January 25, 2008 @01:21PM (#22183344) Homepage Journal
    During the week following Warner's announcement -- a period in which the HD-DVD group went into hiding while they regrouped -- FUD went absolutely rampant. Eclipsing the damage of Warner's announcement were rumors from so-called insiders that Paramount and Universal were also jumping ship, along with the standard claims that the adult industry was going blu. If you do a news search on HD-DVD right now you'll continue to find the same FUD, blown into a life of its own by blogger referencing blogger referencing blogger, repeating the same disproven claim.

    In this vacuum of information, there's no surprise that HD-DVD sales collapsed, and it isn't because of the loss of Warner's catalog.

    Since then the outcome is much less certain, however. Toshiba hasn't just conceded (and they shouldn't -- just prior to Warner's announcement it was 50/50), but instead they've come out swinging, dropping the price of their units by half (obviously it has to be cheap to compete with a format that largely was acquired for "free" as an added value of a game system). This price puts a very capable HD-DVD player with ethernet, HDMI, optical audio, and so on, as cost competitive with a decent upscaling DVD player -- and the Toshiba unit is a very good upscaling player. Add the 7 or more free HD-DVD movies that'll work forever even if HD-DVD dies, and a catalog of 1000 or so HD-DVD movies already on the market, it's a hell of a deal. If someone could hack this baby to be a media head unit it would absolutely own [yafla.com].

    Reports are that sales have been absolutely massive, and Toshiba's campaign has been a success. Warner since has extended their HD-DVD support by almost a month, and other very positive rumors have circulated about HD-DVD.

    Don't write HD-DVD off quite yet.

    As an aside, one thing that really pisses me off about this war are claims that the end of the format war would be good for consumers. This is as logical as saying that Windows and IE should be universal -- good for consumers. Worse, Blu-ray has so many consumer-unfriendly facets (cost, no combo discs, a standard that's still in flux, early adopters getting screwed, the nebulous DRM of BD+) that it winning can never be perceived as a consumer win. Yeah, I'm biased because I didn't choose a format to win based upon a game unit I happened to buy.
  • by Moonpie Madness ( 764217 ) on Friday January 25, 2008 @01:21PM (#22183350)
    I hear this line a lot. Why does it matter?

    If you count the PS3s, then you also increase the denominator when determining the ratio of players to media purchases, the attach rate.

    I think the only honest way to report on blu-ray is to include PS3s and accept a lower attach rate (if there is one). Frankly, most blu-ray players are PS3s, and it's simply an obvious selection for those who aren't interested in video games, so excluding it is insane.

    I know of several PS3 owners. Some of them only have the free blu-rays. Fair enough. None of them are unaware of the HD disc abilities, but some just don't watch movies. The statistics reflect this reality, so I see no reason to adjust things strangely.
  • by bilbravo ( 763359 ) on Friday January 25, 2008 @01:21PM (#22183356) Homepage
    From what I've read (granted, it's on forums and such) Toshiba and Sony both spin the PS3 different ways. Toshiba was including it in sales when talking about attach rates, but when talking about sheer numbers of HD-DVD players compared to Blu-ray players, the PS3 wasn't included.

    I'm sure there are links out there to some blog, but who knows if those are any more reputable.
  • by Wdomburg ( 141264 ) on Friday January 25, 2008 @01:27PM (#22183470)
    Oh, it's also worth noting that all three current Toshiba players (A3, A30, A35) have been in the top ten at Amazon [amazon.com] since the price cut.
  • by Moonpie Madness ( 764217 ) on Friday January 25, 2008 @01:28PM (#22183478)
    Anyone know if the blu-ray folks were similarly inconsistent? Excluding the PS3 when discussing attach rate? Seems unlikely to me.

    The HD-DVD campaign failed as soon as it became evident the PS3 was not going to flop, at least that's my view of the situation. When the PS3 looked doomed and 600$, it wasn't hard to believe that the HD0DVD camp would prevail.

    But how do you compete with the PS3? It's not that expensive next to a great TV and movie collection, and it does all that media stuff + is a future proof blu-ray player. Almost unfair. I wonder why the 360 didn't come out with built in HD-DVD? I beleive it HD-DVD would have dominated had that been the case.
  • by jgarra23 ( 1109651 ) on Friday January 25, 2008 @01:28PM (#22183494)
    Or should I wait another year? I didn't buy one because I didn't want to deal with HD or Blu-Ray. Should I wait another year for Blu-Ray to finish fleshing out the market, or is now a good time?

    I have a feeling that later would be better because lots of companies who were holding back or weren't producing Blu-Ray players will probably now... Any ideas?
  • by tacroy ( 813477 ) on Friday January 25, 2008 @01:31PM (#22183526)
    One of the rationals of doing an external player was so that they could just make a blu-ray addon if HD-DVD didn't win. The main difference is that blu-ray and the PS3 are intimately intertwined. However, the 360 is just a video game machine that you can buy an add-on movie player too. Very few people (that I know of) bought the 360 as a movie player, compared at least, to the apparent many that bought the PS3 for its movie ability. So for all intent the HD-DVD addon, will suffer the same fate as a standalone player, and have little affect on the 360.
  • by Berkyjay ( 1225604 ) on Friday January 25, 2008 @01:32PM (#22183546)
    Well for one, the fact that I had the option to upgrade to the HD DVD player makes the 360 10 times better to me than Sony trying to force their format down our throats....which is why I refuse to buy a PS3. And yes I did buy the HD DVD player add on because I wanted HD DVD to win. So what will we do now? Well Microsoft has already mentioned making a Blu-Ray add-on so I will continue buying all the really cheap HD DVD's then buy the Blu Ray add-on at some point in the future.....problem solved. When it comes down to it was all about my ability to chose what I wanted to do.
  • by VirginMary ( 123020 ) on Friday January 25, 2008 @01:40PM (#22183716)
    Last month I bought a PS3 primarily to run Linux and to watch blu-ray movies. I currently have no plans to buy any games for it preferring to play games on my PSP instead. I like the PS3 as an excellent blu-ray player that is future proof due to its software upgradability.
  • P O R N O ! (Score:2, Interesting)

    by jimboindeutchland ( 1125659 ) on Friday January 25, 2008 @01:42PM (#22183766) Homepage
    I don't know about you guys, but I shant be making a descision on which high definition player to purchase until the porn industry does!
  • by Anonymous Coward on Friday January 25, 2008 @01:49PM (#22183904)
    NPD: Sky Isn't Falling for HD-DVD, Blu-ray Isn't Champ Yet
    01/24/08
    http://www.dailygame.net/news/archives/007137.php [dailygame.net]

    Sales data for HD-DVD and Blu-ray players and movies has been misconstrued lately by various outlets, with reports implying that HD-DVD sales have fallen at an amazing pace while Blu-ray sales have blasted through the roof.

    Not so fast, says the NPD Group.

    While select articles have implied that HD-DVD as a format is doomed and the sky is falling for the format's supporters, the NPD Group this afternoon reinforced that sales results from a single week do not necessarily indicate a trend, and that the week in question had several intriguing variables that have gone unreported.

    The NPD Group attempted to quiet the storm of online scuttlebutt with the following statement:

    "As you may have seen, there are attempts being made to portray NPD's weekly sales tracking figures for next generation DVD as a trend. We want to remind you and make clear that it is not accurate to make long term assumptions based on one week of sales -- a cautionary point that NPD has made as well.

    "The facts are that during the week that is being singled out, both Blu-ray disc players and software were being given away for free with the purchase of 1080p TVs. It is also important to note that the instant rebate promotions that had previously netted Toshiba's players' MSRPs to $199 and $249 had actually ended on Jan. 5th -- causing an increase in HD DVD's MSRP back to $299 and $399 during that same week. Since Toshiba's retail price move on Jan. 13th to $149 / $199 -- Toshiba is seeing very positive sales trends at retail. This reinforces the fact that price is a significant driver of sales.

    "Toshiba's HD DVD players represent a significant value to the consumer and the marketing campaign that just began is proving effective."
  • by samkass ( 174571 ) on Friday January 25, 2008 @01:53PM (#22183988) Homepage Journal
    I think the only honest way to report on blu-ray is to include PS3s and accept a lower attach rate (if there is one).

    I generally agree, but there might be more illuminating ways to break it down. There are PS3's that are sold packaged with movies. An 'attach rate' that counts those but not PS3s sold with game packages might be interesting. Also interesting might be the 'attach rate' counting sales of the PS3 Blu-Ray remote control, which while not required is probably a high-priority item for people who bought the PS3 largely to play media.

    But in the end, I'm not sure the immediate attach rate matters much. A lower attach rate means higher opportunity, since I suspect most PS3 owners will buy at least one Blu-Ray movie just to see what all the fuss is about and the existing attach rate is less than 1.0.

    And with Sony selling more PS3s per quarter than HD DVD players have ever been built (is that statistic still valid?) the sales of standalone players hardly matters anymore.
  • by samkass ( 174571 ) on Friday January 25, 2008 @01:59PM (#22184076) Homepage Journal
    Thus it's ironic that Blu-Ray is a much more open format than HD DVD. Blu-Ray interactive media is based on the Java language, which is going open-source (although BD-J-specific JVMs aren't yet), while HD DVD is based on the Microsoft-controlled iHD standard. Blu-Ray encourages the use of MP4/AAC instead of HD DVDs Microsoft-controled VC-1 (although both formats support both, the authoring tools for each push studios in specific directions). And the PS3, the most prolific Blu-Ray player on the market by far, has "install linux" as a menu item out of the box. Sony doesn't even hold the most patents on Blu-Ray, so the IP situation is more diversified.

    Anyway, I never bought a memory stick or PSP-format game, but Blu-Ray seems to be closer to Sony "getting it".
  • by afabbro ( 33948 ) on Friday January 25, 2008 @02:04PM (#22184144) Homepage
    Not sure about digital delivery, but the fact is that consumers are not going to replace their home libraries they way they did when they went from VHS->DVD (or tape/LP->CD for that matter). End of story. Without that, a new format really doesn't mean much in terms of economic effect for companies.

    When my DVD player burns out, I'll buy an HD player if it's the same price and plays my existing DVDs. After that, maybe I'd buy some HD discs. Otherwise, I'll just keep waiting. That's the attitude of 99.9% of consumers.

  • by orclevegam ( 940336 ) on Friday January 25, 2008 @02:10PM (#22184234) Journal
    Yeah, Blu-Ray is definitely the lesser of all the evils. I don't know about Sony getting it though. Sony has got to be the most schizophrenic company I've ever seen. On one hand they go and do bone-headed things like putting rootkits on cds, then they turn around and offer kits to install Linux on PS2s and even support Linux out of the box on a PS3. To a certain extent of course the strange behavior is explained by the separate divisions within Sony that produce the various products. Obviously some of them (notably the gaming division) do actually seem to "get it", while others (music division) very clearly do not. Hopefully the people making the decisions in the gaming division will manage to convince the rest of the company that they do in fact know what they're talking about vis a vis consumer rights. What would interest me however is finding out if Sony was behind the JVM decision for BD-J or if one of the other members of the Blu-Ray consortium made that call.
  • by Stamen ( 745223 ) on Friday January 25, 2008 @02:15PM (#22184330)
    I pretty much did the same thing, I bought the PS3 mainly for the Blu-Ray. Why is this having "a lot of cash to burn"?

    I wanted a Blu-Ray player, and the PS3 was only $80 more than a pure player, and it got good ratings on the quality of movie playback. I figured the extra $80 was worth getting a game console and media center thrown in. Seems like good economic sense to me.
  • by ergo98 ( 9391 ) on Friday January 25, 2008 @02:15PM (#22184334) Homepage Journal

    Splitting the market down the middle is very harmful to consumers for very little gain.

    It's a completely artificial split, however.

    Imagine if every media company released every disc in DVD, Blu-ray and HD-DVD (the cost to them is marginal. For all of the common bluster about the difficulty supporting both new formats, the reality is that almost every media company does -- you can find HD-DVD discs overseas for Blu-ray exclusive studios, and vice versa). Hell, when I buy HD-DVD discs, the other side has DVD on it.

    That would be the idea situation, letting the consumer really choose. Instead their hand is being forced not on the relative merits and economics of the format, but rather a battle between the media companies.
  • by Moonpie Madness ( 764217 ) on Friday January 25, 2008 @02:18PM (#22184374)
    While you're right, the fact that HD-DVD players also often come with free movies probably balances this out quite a bit. I assume that folks do analyze the attach of movies you have to get yourself.

    The remote is an interesting point. All good points, but that kind of information is probably too valuable to give away. I imagine Warner Bros. knows this stuff.

    I guess we're getting to the point where it is Blu-Ray vs. DVD or internet and HD-DVD isn't important. It is going to be very hard to determine how many blu-ray homes are out there with the PS3 factor.
  • Toshiba's Reply (Score:4, Interesting)

    by clf8 ( 93379 ) on Friday January 25, 2008 @02:20PM (#22184398)
    Taken from http://gizmodo.com/348904/toshiba-sez-npd-blu+ray-victory-numbers-may-be-fluke [gizmodo.com]:

    During the week that is being singled out, both Blu-ray disc players and software were being given away for free with the purchase of 1080p TVs. It is also important to note that the instant rebate promotions that had previously netted Toshiba's players' MSRP's to $199 and $249 had actually ended on Jan. 5th - causing an increase in HD DVD's MSRP back to $299 and $399 during that same week.
  • by MsGeek ( 162936 ) on Friday January 25, 2008 @02:23PM (#22184440) Homepage Journal
    MS was BRILLIANT in not bundling HD-DVD with the XBox 360. They can now quietly put out a plug-in Blu-Ray player for the box and catch what's looking like a tsunami for Blu-Ray.

    HD-DVD will be the RCA SelectaVision of the high definition DVD-like disk era. Remember those? Flimsy 12" disks encased in a plastic carrier and read by a stylus, they'd fall apart after a few plays. This allowed Pioneer to own the videodisc market with LaserDisc.

    Heh, Sony has gotten its revenge for Betamax.
  • by twistedsymphony ( 956982 ) on Friday January 25, 2008 @02:34PM (#22184582) Homepage

    ...then they turn around and offer kits to install Linux on PS2s and even support Linux out of the box on a PS3
    That's a different situation entirely... A group of console/linux hackers basically held Sony hostage saying that they cracked the console and if Sony didn't offer an official Linux distro they'd go public and open the door to pirates as well. Sony obliged and we got an official Linxu distro. The same group did the same thing to MS over the Xbox 1, MS denied and the console was cracked wide open to the point where it can be used as a fully functioning PC with little more than a screwdriver and a soldering iron.

    Even still the PS3 does offer more open standard support than their competitors. You can use Generic hard drives, generic bluetooth devices, generic memory units, generic usb devices, etc. while it's mostly proprietary on the 360 and Wii.

    Sony's Biggest folly IMO is their abhorrent lack of organization both blu-ray and the PS3 in their release configurations were running on un-finalized specs, blu-ray is just now finalizing it's spec and basically obsoleting most of the early players, and disc releases and the PS3 still feels incomplete and probably wont feel "finished" until the release of home/full integration of the x-media bar. At least the HD-DVD spec was finalized and all the players and media supported that spec on day 1.
  • Re:sales (Score:3, Interesting)

    by MBGMorden ( 803437 ) on Friday January 25, 2008 @02:35PM (#22184606)
    A lot of the public will take it for what it is and won't complain. When Dreamcast prices (for systems and games) were slashed people went and bought the things in droves. Sure they will not be any more games, but when the system was $29 and the games are all $5, it really didn't matter. For less than $100 you could have a Dreamcast and a dozen games, which is probably about as much as your average person ever buys for any one system anyways.

    HD-DVD is going under, but if the movies drop in price, people will snap them up and sit them on their shelves as their high definition copy of whatever movie it is. If they can snap all those up for a low price it's worth it. The Big Lots phenomenon :).

    That said, I am personally unlikely to buy any more HD DVD's. I'd bought a few already, but I didn't have a player. Just bought the combo disks that also had one side with the DVD version on it, in anticipation of one day buying an HD player. I'm picky on rebuying media so I figured the extra few bucks would be worth the gamble. Looks like I lost, but the Blu-Ray players will still play the DVD side of those movies so it's not a total loss.
  • by Plekto ( 1018050 ) on Friday January 25, 2008 @02:53PM (#22184892)
    $200 players are still having a hard time compared to the new and finally coming into its own PS3s for $399. Yes, it took a long time, but the PS2 also took about a year or two to really take hold as well, if you remember. As it is, you can have your HDTV compatible player and a gaming box all in one package. Plus, the resale value on a PS3 is also surprisingly high, often 75% of what they sold for new.

    And there's talk of a PS3 without a hard drive and a few less features for even less money in the future(reminds me of the PS2 "slim" model release). Sony ended up making the right choice here as it forced people to buy the player as well with the console and lock millions of people into Blu-Ray.

    IMO, it was the computer crowd that finally pushed it over the edge to win it. Blu-Ray burners and media can be found fairly easily, and with the backing of most of the computer giants as well, it was only a mater of time before it won out.

    P.S. The actual laser assembly itself, which is what makes the drive different than a DVD drive aside from a few basic decoding chips and such *retails* for about $70. A $100 Blu-Ray reader should be no problem at all.(once analog TV is dropped in a year, it'll happen for sure)
  • by shakezula ( 842399 ) on Friday January 25, 2008 @03:38PM (#22185536)
    I'll second that, I've also got a 46" (albeit Sony Grand Wega 1080i) HDTV and dvd's look EXCELLENT even using 480p output. That being said, I also have a PS3, bought mainly for the gaming aspect--but I have quickly fallen in love with BluRay. The visuals aren't the only upside to BluRay, the uncompressed 5.1 or DTS tracks that come on nearly every title simply CRUSH Dolby Digital 5.1. I don't even have a bazillion dollar surround sound system, only a fairly entry level Sony receiver with HDMI and an addon Sony Powered 12" sub--but the difference in sonic quality of uncompressed vs. DD5.1 is very impressive! (and I thought DTS was the end-all of high end audio...)

    I'm glad to see BluRay is winning the HD format war, the titles I've purchased on BluRay (Fifth Element, Underworld, Some Disney Flicks for my kids) are far superior to DVD and getting them on sale for $15-$20 isn't much more than their DVD counterparts. On the other hand, the PS3 makes DVD's look and sound excellent as well so there's no need to re-buy the movies we've grown to love unless the media falls apart. Add in the ability to play Mpeg-4 off my NAS box and the PS3 may finally make Sony's dream of a single media power house in your living room reality.
  • by ben there... ( 946946 ) on Friday January 25, 2008 @06:34PM (#22187882) Journal

    It only takes about an Athlon 2100+ to do either without dropping frames.
    Not according to Anandtech [anandtech.com]. Core 2 Duo E6600 will hit 100% CPU usage and start dropping frames with any GPU earlier than GeForce 8-series.

    An Athlon 2100+ wouldn't come close to handling it with an older video card. It probably couldn't even with an 8800 GTX GPU or one of the new G92 cards.

    You're looking at more like X2 4800+ (probably even higher) on the AMD side of things...

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